"When compared to other developed countries and their computer recycling laws, Australia has a primitive approach. We need to catch up.

"The failure of the computer industry to come up with a voluntary approach is a key test for the NSW Government's waste policy, with elections on the way.

" After five years the Government is running out of excuses not to regulate. The toxic time-bomb is ticking."

Castle said at the very least the federal government must cooperate by providing customs data so state regulators can track computer importers.

A number of computer vendors currently run recycling initiatives including HP, Dell and IBM.